Suppose that currency in circulation is GHS 800 billion, the amount of checkable deposits is GHS 900 billion, and excess reserves are GHS 17 billion.
a. Calculate the currency deposit ratio, the excess reserve ratio, and the money multiplier.
b. Calculate M1 money supply and the monetary base.
c. Suppose the central bank conducts an unusually large open market purchase of bonds held by banks of GHS 1,600 billion due to a sharp contraction in the economy. Assuming the ratios you calculated in part (a) remain the same, predict the effect on the money supply.
d. Suppose the central bank conducts the same open market purchase as in part (c), except that banks choose to hold all of these proceeds as excess reserves rather than loan them out, due to fear of a financial crisis. Assuming that currency and deposits remain the same, what happens to the amount of excess reserves, the excess reserve ratio, the money supply, and the money multiplier
Answers
shorten the question
The currency deposit ratio is 0.89, the excess reserve ratio is 0.0189, and the money multiplier is 10.5263. The M1 money supply is GHS 1,700 billion, and the monetary base is GHS 817 billion.
The currency deposit ratio is calculated by dividing currency in circulation by checkable deposits: 800 billion / 900 billion = 0.89. The excess reserve ratio is calculated by dividing excess reserves by checkable deposits: 17 billion / 900 billion = 0.0189. The money multiplier is calculated as the reciprocal of the sum of the currency deposit ratio and the excess reserve ratio: 1 / (0.89 + 0.0189) = 10.5263.
The M1 money supply is calculated by multiplying the currency in circulation by the money multiplier: 800 billion * 10.5263 = GHS 8,421 billion. The monetary base is calculated by adding currency in circulation and excess reserves: 800 billion + 17 billion = GHS 817 billion.
With an unusually large open market purchase of GHS 1,600 billion, the money supply is predicted to increase. Assuming the ratios remain the same, the new money supply would be the initial excess reserves multiplied by the money multiplier: 17 billion * 10.5263 = GHS 179.082 billion.
If banks choose to hold all the open market purchase proceeds as excess reserves instead of loaning them out, the amount of excess reserves will increase by GHS 1,600 billion, resulting in a total of GHS 1,617 billion. The excess reserve ratio will increase accordingly: 1,617 billion / 900 billion = 1.7967. However, the money supply will remain the same since no new loans are made. The money multiplier will decrease, as the reciprocal of the sum of the currency deposit ratio and the new excess reserve ratio: 1 / (0.89 + 1.7967) = 0.4284.
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Related Questions
what is a sale promotion
Answers
Answeris one of the elements of the promotional mix. :
Explanation:
Answer:
profit
Explanation:
You take a major selection of items and you increase the amount wanted by a quarter percentage.
A sold watch to B at a 20% gain and B sold it to C at a loss of 10%. If C bought the watch for Rs. 216, at what price did A purchase it?
Rs. 150
Rs. 276
Rs. 200
Rs. 216
Answers
A purchased the watch for Rs. 200. Option c is Correct.
A fresh deal for 1,000 aircraft was made by the government. Additionally, you should use "purchase" when you require a noun form, as in the sentence: You made a wise purchase when you bought petrol before the price increased. In conclusion, try to use "buy" for straightforward activities and "purchase" for more official transfers of money for things.
Let's assume that the price at which A purchased the watch is x.
A sold the watch to B at a 20% gain, which means B paid 120% of the price A paid:
120% of x = 1.2x
B sold the watch to C at a loss of 10%, which means C paid 90% of the price B paid:
90% of 1.2x = 1.08x = Rs. 216
Solving for x, we get:
x = Rs. 200
Therefore, A purchased the watch for Rs. 200. Option c is Correct.
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The goal of federal reserve monetary policy is to affect the level of competition in the u.s.
a. True
b. False
Answers
The Fed normally implements monetary policy by setting a target for the federal funds rate. It achieves its goals through open market operations, financial transactions traditionally involving US Treasury bonds.
What is the main objective of monetary policy in the US economic?What is the goal of US monetary policy? Monetary policy has two basic objectives: Promote 'maximum' sustainable production and employment and promote 'stable' prices. These goals are mandated by amendments to the Federal Reserve Act of 1977.
How does monetary policy affect economy?Monetary policy primarily affects the economy, promoting or constraining it in the form of new capital. Monetary policy is implemented by the Fed and involves changes in the money supply interest rate. An expansionary policy involves increasing the money supply while lowering interest rates.
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The demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year. The demand is easily satisfied on a daily basis. This demand for bread can be categorized as _____.
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Considering the situation described above, this demand for bread can be categorized as a "static demand."
This is because a static demand is a type of demand that is not flexible at any given point.
Also, demand is said to be static when the change in quantity demand of a commodity is relative to a change in the unit price of a commodity.
Thus, in this case, when the demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year, this is an example of a Static demand because it is stable throughout the year.
Hence, in this case, it is concluded that the correct answer is "Static Demand."
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Which career pathways involve high risk due to exposure to dangers?
Firefighters in the Emergency and Fire Management pathway, Correctional Officers in the Corrections pathway, and Detention Officers in the Law Enforcement pathway
Firefighters in the Emergency and Fire Management pathway, Detention Officers in the Corrections pathway, and Intelligence Analysts in the Security and Protective Services pathway
Intelligence Analysts in the Security and Protective Services pathway, Detention Officers in the Corrections pathway, and Police Officers in the Law Enforcement pathway
Firefighters in the Emergency and Fire Management pathway, Detention Officers in the Corrections pathway, and Police Officers in the Law Enforcement pathway
Answers
Answer:
Firefighters in the Emergency and Fire Management pathway, Correctional Officers in the Corrections pathway, and Detention Officers in the Law Enforcement pathway.
Explanation:
The career pathways that involve high risk due to exposure to dangers is :
A) Firefighters in the Emergency and Fire Management pathway, Correctional Officers in the Corrections pathway, and Detention Officers in the Law Enforcement pathway.
"Career Pathways"The career pathways that involve high risk due to exposure to dangers is:
Firefighters in the Emergency
Firefighters too give an critical part in teaching the open with respect to fire and security.
Instructing fire anticipation and teaching the open on how to reply in crisis circumstances can offer assistance spare lives.
Fire Management pathway
Candidates require a long time of work encounter in law requirement, fire security, or an crisis administration field.
Crisis administration executives ordinarily require a bachelor's degree
Correctional Officers in the Corrections pathway
Corrections officers may do a few or all of the taking after:
supervise prisoners' day by day schedule, which incorporates feast, work and amusement times. screen, evaluate and oversee the conduct and security of detainees watch jail buildings and grounds.
Detention Officers in the Law Enforcement pathway.
A detainment officer forms prisoners, keeps up imprison security, serves dinners, transports detainees, gets and forms detainees into care of educate, looks detainees, and takes charge of individual property and gives detainees with opportunity to call their lawyer or relative.
A Career Pathway traces the positions, compensation, and preparing required to development in an industry.
Thus, the correct answer is A.
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5. The measurement of how happy the customer is with their shopping experience with a retailer is called:
O A. Product solutions
O B. Brand knowledge
O C. Customer satisfaction
O D. Product knowledge
Answers
How is the housing industry related to the economy? If the economy is doing well, what types of homes are being constructed and purchased? What if the economy is doing badly? Other than housing, what additional industries might the economy impact?
Answers
The housing industry have important relation with the economy because its prices can impact residential investment and thus, affect the economic growth.
What is housing industry?An housing industry is an industry that encompasses building of housing. construction, engaging in commercial housing activities etc.
Generally, when an economy is doing well, it will be favorable to build house of high value as its gives higher confidence in the industry and economy,
Also, the additional industries that impact an economy includes Healthcare, Technology, Retail, Manufacturing industry etc
In conclusion, the housing industry have important relation with the economy because its prices can impact residential investment and thus, affect the economic growth.
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Identify the stage of the new product development based on the given scenario
Answers
Answer:
Product Development Stage
Explanation:
Killian's board game is in the Product Development Stage.
This stage is the first part of the Product Life Cycle. In this stage, research on the target market and product positioning are carried out. It is at this stage that market research, distribution channels and competitor analysis are carried out and thoroughly outlined. Also, product validation is carried out. This involves getting feedback from test users concerning the use of the product.
So, this stage is Product Development Stage.
What are some of the payoffs companies receive when offering child care benefits to employees?
Answers
Answer:
When an employer provides child care for its employees, both will benefit. The benefits that employers obtain are generally:
Child care is extremely important for working parents and it might be the difference between taking or staying on a job or working somewhere else. Companies that provide child care have lower employee churn, specially for working parents. Employees tend to be more productive since they are happier and have less things to worry about (specially child security and child care costs).Employees feel better about their employees and they tend to believe that the employer actually cares for them and their families. I'm sure there are many more, so etc.how would a strong u.s. dollar impact the trade of grain produced in the united states? quizzez
Answers
jo operates an upscale shop that does both pet and human manicures and pedicures. she is targeting a market segment of people who place great value on their pets and are concerned with their own appearance, yet pressed for time. no other businesses meet the needs of these consumers. which strategic issue in retailing does joe appear to have addressed?
Answers
According to the given information, retail positioning strategic issue in retailing does joe appear to have addressed.
Retail Positioning:
In the final market, this is the retailer's position. This stance seeks to give the retailer a competitive edge by setting itself apart from the rest of the pack of rivals. It should therefore serve as a guide for all other choices the retailer makes regarding how to satisfy its target customers. The marketing mix variables—i.e., product, price, place, and promotion—are combined in this process to create an overarching strategy with the goal of success. Additionally, it calls for keeping an eye out for potential customers using a precise market segmentation process that enables the retailer to recognize a particular group of customers and match them as closely as possible to the retail offering.
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What is good example of active listening?
Answers
Answer:
looking directly at the person or thing and paying attention .
Explanation:
my best answer .
Answer:
- Building trust and establishing rapport.
- Demonstrating concern.
- Paraphrasing to show understanding.
- Using nonverbal cues which show understanding such as nodding, eye contact, and leaning forward.
- Brief verbal affirmations like “I see,” “I know,” “Sure,” “Thank you,” or “I understand”
Explanation:
All of these i just typed could really help u with your question ! <3
- mark me brainliest pls ?
Question 5 of 10
Which of the following is an internal factor?
A. Employee turnover
B. Economic recession
C. Employment laws
D. Interest rates
Answers
Answer:
A. Employee turnover
Explanation:
Internal factors refer to the things that are within the organization's control. They are issues or factors unique to a particular organization. Internal factor contrasts with external factors which refer to issues that affect the whole industry and therefore beyond the control of any single organization.
Employee turnover refers to the rate at which employees leave the company, either voluntary or involuntary. Each organization will have a unique employee turnover rate. Employee turnover is, to a large extent, within the organization's control.
penny and Theodore comprise a scheme whereby Penny will send information to Theodore in regards to the moves her telecommunications company is making when she learns about it in their company's internal strategy meeting so he can make a better stock trade. This is known as
Answers
Answer:
I think this is Insider trading
Explanation:
insider trading is an illegal practice where someone uses their own advantage of having access to confiditional information to practice stock trading on the stock exchange
How does shopping around for an automobile loan benefit you?
Answers
Answer:
Shopping around for an automobile loan benefits me from the interest that we are charged gets added to the amount we are borrowing.
ASAP PLEASE-------------
Cameron has decided to diversify his investments in the following way:
$3,000 in an account earning 2.7% simple interest
$5,000 in a savings account earning 1.8% interest compounded annually
$5,000 in a certificate of deposit earning 3.9% interest compounded quarterly
How much total interest will Cameron earn on his investments at the end of 3 years?
a. $530.87
b. $665.57
c. $973.30
d. $1,135.30
Anyone know how to do this?
Answers
Answer:
D.) $1,135.30 at the end of 3 years
Explanation:
First method:
Formula for simple interest is I = P * R * T.
In this instance P = 3,000, R = 2.7, T = 5.
\(I=(3000)(0.027)(5)\\= $405\)
Second method:
The formula for annual compounding is \(A=P(1+r)^t\), where A = amount, P = principal (initial) amount, r = rate of growth, t = years.
\(A=5000(1+0.027)^3\)
=\(5416.0334\)
Third method:
The formula for periods within a year is \(A=P(1+\frac{r}{n})^n^t\). There is now the added value of n (number of periods per year). Since there are 3 quarters per year, n will be 4.
\(A=5000(1+\frac{0.039}{4})^4^*^3\\=5000(1.00975)^1^2\\= 5617.4129\)
Sum after 3 years is $1,135.30
Your friend’s mother just moved to an assisted living facility and he asked if you could present a program for the residents about the ma-pd plans you market. What could you tell him?.
Answers
What you could tell him is: You appreciate the opportunity and would be happy to schedule an appointment.
What is MA-PD?MA-PD which full meaning is Medicare Advantage plan is a medical plan that help to cover medical expenses.
What you should tell him is that you appreciate the opportunity given to you and you would be happy to schedule an appointment with anyone based on their request.
Therefore thank him for the opportunity given to you.
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The set of skills and knowledge needed to make informed decisions about
money matters is called financial literacy.
A. True
B. False
Answers
I’m pretty sure
how did economic issues factor into the events surrounding the leo frank case?
Answers
Economic concerns play a role with in Leo Frank case's events because poor Georgians despised northern businessmen who moved there in order to prosper.
What is economic explain?Economics is, in fact, a study the scarcity and how it impacts the utilisation of resources, the creation of goods and services, the growth of production and welfare through time, as well as a large array of other complex issues that are very significant to society.
What is an economic example?Example: Farmers lower the price of both the crop when corn production rises in order to sell more of their harvest. The amount of maize required to feed the nation's population, as well as other produce, must be reduced if the production is too great.
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A(n)
strategy determines the direction the organization will take in making directional decisions.
A. business
O
B. organizational
C. operational
O
D. corporate
Answers
costco buys a put option on yen with a strike price of 107 yen/dollar. which interbank spot rate maximizes their profit if they choose to exercise the option before maturity?
Answers
The interbank spot rate that maximizes Costco's profit when exercising the put option is below 107 yen/dollar. The lower the spot rate, the higher the profit.
When Costco buys a put option on yen with a strike price of 107 yen/dollar, they have the right, but not the obligation, to sell yen at this strike price. The profit they make is determined by the difference between the strike price and the interbank spot rate. The put option's value increases as the interbank spot rate decreases because it can sell the yen at a higher price than the current market rate.
To maximize its profit, Costco should exercise the option when the interbank spot rate is at its lowest point below 107 yen/dollar before the option's maturity. The lower the spot rate, the larger the difference between the strike price and the spot rate, resulting in a higher profit for Costco.
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Lima buys a new car from Motor City Inc. In the first month after the purchase, the car repeatedly fails to meet standards of quality and performance. To prevail against Motor in a lemon-law dispute, Lima must a. take the car to an expert third party for an independent inspection. b. have reason to know of the cause of the failure. c. file a court action without prior notice of the defect to the dealer. d. give the dealer or manufacturer an opportunity to remedy the problem.
Answers
To prevail against Motor in a lemon-law dispute, Lima must have reason to know of the cause of the failure.
Lemon law is specifically awarded to customers purchasing vehicles in the form of choice to either get replaced product or to get a refund for the defective vehicle.
Hence, if the vehicle is impaired to function properly or is diagnosed as defective within 30 days of its purchase would entail them with lemon rights. To avail this right the consumer must have proper reasons to support it.
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Michael works as a financial advisor in a doctors office. The two organizations that Michael most likely belongs to are the..
A. AFP and AMA
B. AFP and ACS
C. AMA and AIA
D. AIA and ACS
Answers
Michael works as a financial advisor in a health practitioner's office. the 2 agencies that Michael maximum possibly belongs to are the: A. AFP and AMA
A monetary adviser or financial advisor is a professional who offers economic services to clients based totally on their monetary state of affairs. In many nations, financial advisors should whole precise education and are registered with a regulatory body in an effort to provide advice.
A financial advisor is a professional who's paid to offer financial recommendations to customers. simply as you would hire an architect to create a plan for your house, you hire a financial marketing consultant to create a plan for your budget. it is all about paying a person for the know-how you need to reach unique goals.
A monetary guide will now not simplest set you up financially. they could help make choices on the most important existence adjustments like how tons maternity go away can you have the funds to take while having a child. They also can help maintain you on target financially while lifestyles throw you curve balls which include redundancy.
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Charity organisation has asked you to raise money for it by running a fete The organiser has given you a maximum amount to spend how would you plan the fete using a computer model and make a profit
Answers
Answer:
Charity fund should be handled with care as it is donor's money which should be handled with care. The amount of charity should be spent for the actual cause.
Explanation:
Charity fund is the money which should be handled with great care. The major fund of the charity should be attribute to the main cause and there should be proper record maintenance for every penny spent. The charity fund is the responsibility of the management and any donor can ask anytime about the money spent.
Georgina decides to take a dozen cupcakes to school to sell so she can raise money for her school trip to New Orleans. She prices the cupcakes at $0.50 each. With in 15 minutes she has sold all of her cupcakes, and through out the day teachers and students ask her if she has anymore.
This market model is in a [______]?
This is for a economics class I didn't know what catagory to pick
Answers
Answer:
Shortage
Explanation:
I got it correct because I watched the given recording.
Georgina decides to take a dozen cupcakes to school to sell so she can raise money for her school trip to New Orleans. This market model is in a "competitive market".
Georgina operates in a competitive market characterized by high demand and a desirable product: her cupcakes. The price point of $0.50 each aligns with the perceived value which is resulting in swift sales within 15 minutes.
Subsequent inquiries from both teachers and students demonstrate sustained interest indicating that Georgina's cupcakes have achieved product-market fit.
Georgina's success in selling all cupcakes swiftly and generating ongoing inquiries highlights a well-balanced market equilibrium within the school community.
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What safety precautions will you take if you were a guest going to
play slot machine games at the casino?
Answers
As a guest going to play slot machine games at a casino, it is important to prioritize safety and take necessary precautions. Here are some safety measures you can consider:
1. "Follow casino guideline": Familiarize yourself with the specific safety guidelines and protocols implemented by the casino. This may include requirements such as wearing masks, practicing physical distancing, and using hand sanitizers.
2. "Wash or sanitize hands frequently": Before and after playing the slot machines, make sure to wash your hands with soap and water for at least 20 seconds. If handwashing facilities are not readily available, use hand sanitizers containing at least 60% alcohol.
3. "Avoid touching your face": Refrain from touching your face, particularly your eyes, nose, and mouth, as it can be a pathway for germs to enter your body. If you do touch your face, make sure to clean your hands immediately afterward.
4. "Use disposable gloves (optional)": If you prefer an extra layer of protection, you can consider wearing disposable gloves while playing the slot machines. However, ensure that you properly dispose of them after use and avoid touching other surfaces or your face while wearing gloves.
5. "Practice physical distancing": Maintain a safe distance from other players while playing the slot machines. Follow any floor markings or signage that indicate proper spacing between individuals.
6. "Avoid overcrowded areas": If the casino seems to be crowded, particularly around the slot machines, consider waiting for a less busy time or finding an alternative machine that allows for more space between players.
7. "Clean the machine before use (optional)*" If you want to take an extra precautionary step, you can use disinfectant wipes to clean the slot machine's buttons, screen, and armrest before you begin playing.
Remember, it's always essential to stay updated with the latest safety guidelines and regulations provided by health authorities and the specific casino you plan to visit. By being mindful of personal hygiene, following safety protocols, and using common sense, you can enjoy playing the slot machines while minimizing potential risks.
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Early in the year, an investor purchased 100 shares of KAP common stock at a price of $60 per share. Just prior to the end of the year, after receiving three quarterly dividends of $1, the investor liquidated all of the KAP at a price of $59 per share. If the Consumer Price Index (CPI) increased by 3%, the investor's total return over the holding period was A) 3.33% B) .33% C) 5% D) 2%
Answers
Disadvantages of choosing a job that is extremely popular or in demand
Answers
The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.
What is a high demand job?This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.
The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.
The number of qualified persons may become more than the job that is available for the people to do in the long run.
Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.
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Gareth bought a home for $135,000. The home gained 2. 2% in value every year for eight years until Gareth sold it. How much profit did Gareth make, to the nearest hundred dollars? a. $60,700 b. $25,700 c. $23,800 d. $29,100.
Answers
The amount of profit made by Gareth upon the sale of the home is $26,700.
Computation:
Given,
\(P\) = Principal Amount of $135,000
\(i\) = interest rate of 2.20%
\(n\) =number of years are 8 years
First, the value of the home at the end of the 8th year will be computed by using the formula of future value.
\(\begin{aligned}\text{Future Value}&=P\times(1+i)^n\\&=\$135,000\times(1+0.022)^8\\&=\$160,672.27\end{aligned}\)
Now, the profit will be computed by taking the difference of the future value of the home and the purchase price or the principal amount of the home.
\(\begin{aligned}\text{Profit}&=\text{Future Value\;-\;Principal Amount}\\&=\$160,672.27-\$135,000\\&=\$25,672.27\;\text{or}\;\$25,700\end{aligned}\)
Therefore, at the time of sale of the home, the amount of profit gained by Gareth is $25,700.
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Answer:
b. $25,700
Explanation:
got it right
A Las Vegas hotel want to provide to bear experience for a rep for its rapidly growing custom made base from China at the hotel can best do this by hiring
Answers
Answer:
Brian, a Mandarin interpreter who loves to interact with groups of all sizes.
Explanation:
In the context, a hotel in Las Vegas wants to give to experience for a representative for the increasingly growing customs which is made base from country China. The hotel can best do this by hiring Brian who is a Mandarin interpreter and he loves to meet and to interact with all size of people.
He can better able to facilitate the requirements of the travelers from China in a broader sense. Brian can allow the travelers less fluent in English speaking to make advantage of the available features at the hotel and also the amenities that the hotel offers. He bridges the language gaps between the hotel and the Chinese travelers.